Commonwealth Capital, LLC is a hybrid venture capital management company comprised of former Wall Street investment bankers and stockbrokers, experts in corporate, tax and securities governance; fraud prevention; deal-structuring and compliance matters related to creating and selling securities; as well as IT and SaaS innovators. Read More…

Commonwealth Capital has created the first ever utility that employs standard corporate engineering protocols to effectively solve the six major problem issues within the private capital markets industry—simultaneously.

CONTINUE ON TO DISCOVER…

CURRENT PROBLEMS WITHIN THE PRIVATE CAPITAL MARKETS

&

COMMONWEALTH CAPITAL’S TOTAL SOLUTION

1. The Problems for Entrepreneurs.

There are Only 2 Ways to Legally

Raise Substantial Amounts of Capital in the United States.

Unless you have really wealthy relatives who like you a lot, for all practical purposes, there are only two ways to legally raise substantial amounts capital. Racking up credit card balances; borrowing money from friends and family or receiving grants isn’t considered true capitalization. “Substantial amounts” means obtaining more capital than you and your management team members could collectively borrow from a bank. What we’re referring to here is building a large capital foundation to grow your business to limitless capacity, without giving up too much, too early, for too little. To legally raise capital in the United States, you must engage in one of the two activities listed below:

1. Produce a Business Plan and submit it to Financial Institutions (Venture Capital, Private Equity and Family Offices) for Capital for a 1.5% probability of attainment or

2.Produce a Securities-offering Document and conduct the offering in Compliance with U.S. Federal and State(s) Securities Laws, Rules and Regulations, selling either directly to investors for a 70% probability of attainment or through a FINRA Member SEC registered broker-dealer for a 90% probability of attainment.

A.Currently, there are only three ways to legally conduct asecurities-offering in the United States

Register the Securities on the federal and/or state level with filing Form S-1 (S-11 for Funds/REITs) or file on Title IV (JOBS Act of 2012) Regulation A+ (both very expensive procedures).

Qualify for an Exemption from Registration,with the ability to advertise the offering with the use of the general media, e.g., Small Company Offering Registration (“SCOR”), California Corporation Code Section 25102(n). (A fairly expensive procedure.)

Claim an Exemption rom federal and/or state registration, with or without the ability to advertise the offering with the use of the general media, e.g., Title III -Regulation Crowdfunding, or Title II – Regulation D 506(c). (A relatively inexpensive procedure.)

U.S. securities laws were written and are in place to protect the investor side of the capital equation, not the issuer of securities, the entrepreneur. Therefore, by federal law, financial institutions’ fiduciary duty rests with the investor side of the capital equation.
So who is in place to protect the issuer? Experienced securities attorneys can protect the issuer from securities regulators but that’s pretty much where it ends.

These attorneys cannot protect the issuers from the financial institutions who control the capital, because any demands made to the financial institutions by these attorneys on behalf of the issuer can easily be quashed by denying access to the U.S. capital markets.

This is the huge gap we’ve been filling since 1998. As former Wall Street investment bankers we enable issuers to legally access the U.S. capital markets without the need of or permission from any financial institution.

Although we certainly have the experience, we are not a broker-dealer or traditional venture capitalist, by design. Our firm’s sole purpose, and fiduciary duty, is to protect the issuer from selling too much of their company too early for too little.

Our process and methodologies are born from the fundamentals of capital markets side of Wall Street investment banks. To us, our process is simple, straightforward and logical. Unfortunately, to most our process can seem complicated. Hence, that is why we only choose to engage companies that have management team members with direct experience with the U.S. securities industry; fully comprehend the dynamics of the U.S. capital markets and convertible securities in general or are willing to learn.

As your venture capital partner, we trade our time, talent and technology to further assure that you and your founders don’t sell too much of your company too early… for too little through proper corporate engineering. We do all this, with little to no risk on your part, in exchange for securities that will convert into less than 2% of your company’s common equity.

2. The Problems for Professional Service Providers for the Small Business Community.

Most professional service providers, such as; attorneys, accountants, commercial banks, insurance agents, etc. attempt to grow their businesses competing directly with each other vying for the same existing companies that can actually afford or qualify for the products or services they offer. This battle is a zero-sum game. Since most start-up or early stage companies have little to no revenue or working capital to begin with, these professionals simply cannot afford to waste their time talking to them.

The Solution for Professional Service Providers. As Alliances of Commonwealth Capital, these professional service providers can now create their own quality deal flow, organically, with no effort, risk or cost. By simply placing a Commonwealth Capital tracked banner private invitation link from their website to ours they seamlessly refer companies for direct capitalization from our VC Fund or self-incubation through our Corporate Engineering Conservatory™. Once the standardized corporate engineering process is completed, these newly well-capitalized companies return to the Alliance to engage them with the proper retainers and qualifications. Enter the specific category from the Alliances Tab above.

3. The Problems for Angel & Individual Investors.

In a classic Catch-22, the failure rate for start-up and early stage companies at 85% is due to a lack of capital, and that deters investment capital, thereby furthering that failure rate. But even well capitalized companies can and do fail. Most investors view investments in privately held companies, as a gamble and hence simply don’t bother. For angel and individual investors that do invest, they often lock up their investment capital indefinitely or worse they simply lose it.

The Solutions for Angel & Individual Investors. As Alliances of Commonwealth Capital, these investors can now create their own quality deal flow to invest in, organically, with no effort, risk or cost. By simply referring potential companies to a Commonwealth Capital Managing Director, they seamlessly refer companies for direct capitalization from our VC Fund or self-incubation through our Corporate Engineering Conservatory™ for standardized corporate engineering prior to investing. In addition, by re-engineering and re-capitalizing their previous older investments in privately held companies, these Angel and Individual Investors can be rescued by recapturing a return of all or a portion of the original capital invested. Enter the specific category from the Alliances Tab above.

Also, as Platinum Accredited Investors (Co-investors) with Commonwealth Capital, any Accredited Investors can now invest in new companies, that have mitigated downside investment risk and maximize upside investment return potential through proper corporate engineering, with confidence. Enter the specific category from the Investors Tab above.

4. The Problems for Venture Capital & Private Equity Firms.

The basic problem with venture capital and private equity firms seeking quality investments (also known as “quality deal flow”) is that there are too few qualified portfolio company candidates that meet the typical venture capital firm’s risk profile to invest in. There’s more venture-capital and private equity money currently available than at any other time in world or U.S. history; however, the money is not being invested due to a lack of quality deal flow. In the VC or Private Equity industry, this reality is called “capital overhang.” The term Capital Overhang refers to the amount of capital committed by investors to venture capital and private equity firms for investing purposes. When VC and private equity funds are created, most have limited lifetimes. That means that fund managers typically have 5-7 years to invest the private equity overhang, or they must send the capital back to their investors. Over the decade of 2007-2017 the Capital Overhang in the U.S. private equity markets have hovered around the $500 Billion dollar level in the U.S. and it’s getting close to $1 Trillion Globally. Yes, that means that the U.S. VC and private equity industry will give their U.S. investors back around $500 billion dollars, each year due to the lack of quality deal flow.

The Solutions for Venture Capital & Private Equity Firms. As Alliances of Commonwealth Capital, these institutional investors can now create and filter their own quality deal flow, organically, with no effort, risk or cost. By simply placing a Commonwealth Capital tracked banner private invitation link from their website to ours they seamlessly refer companies for direct capitalization from our VC Fund or self-incubation through our Corporate Engineering Conservatory™. Once the standardized corporate engineering process is completed, these newly well-capitalized companies return to the Alliance to engage them with the proper qualifications for further investment. In addition, by re-engineering and re-capitalizing their previous older investments in privately held companies, with illiquid securities, these Venture Capital & Private Equity Firms can be rescued by recapturing a return of all or a portion of the original capital invested. Enter the specific category from the Alliances Tab above.

Also, as Platinum Accredited Investors (Co-investors) with Commonwealth Capital, these Venture Capital & Private Equity Firms can now invest with confidence into companies that have mitigated downside investment risk and maximize upside investment return potential through standardized corporate engineering. Once the proper corporate engineering is completed, these new well-engineered companies return to these Co-investors for additional funding, if necessary, from a more qualified position. Enter the specific category from the Investors Tab above.

Most securities & capital markets industry professionals, such as; stockbrokers, financial advisors, financial planners, and registered investment advisors are faced with an ever increasing punitive-regulatory environment and endlessly shrinking margins. These highly qualified individuals are victims of electronic automation and the litigious nature of the consumer markets side of the securities industry. They too seek to attract investors away from other like type professionals with little differentials in their ability to offer products or services. This battle is also a zero-sum game. With well-educated millennial’s ability to learn and manage their financial affairs on-line this is the most vulnerable of all professions to artificial intelligence applications, now and for years to come.

The Solutions for Securities & Capital Markets Industry Professionals. As Alliances of Commonwealth Capital, these securities & capital markets industry professionals can now position themselves as CFOs and or Independent Directors for one or more newly well-capitalized companies for substantial cash and equity compensation. They can hang up their securities licenses (temporarily or permanently) and provide needed guidance and assistance to capitalize these young firms. Getting in on the ground floor of well-engineered companies can lead to far greater wealth with less risk than continuing in a dying profession.Enter the specific category from the Alliances Tab above.

Most may qualify as Associates (Managing Directors & Managing Enterprises) of Commonwealth Capital. These securities & capital markets industry professionals can position themselves as Managing Directors of a Venture Capital firm in a relatively un-regulated industry. In these positions, to avoid conflicts of interest, they must hang up their securities licenses (temporarily or permanently). Associates provide Commonwealth Capital with acquiring deal flow of start-up and early stage companies. No selling of securities of portfolio companies necessary or allowed. No soliciting of investors allowed. Associates receive cash from document and online platform production fees for their efforts. More importantly, our Associates build their own private pool of preferred equity in the portfolio companies they invite into our VC Fund. These young companies need your help, and we’ll help you help them. Enter the specific category from the Associates Tab above.

Wall Street and Corporate America have an insatiable appetite for what is termed “quality deal flow” meaning companies worthy of investment or acquisition. Wall Street investment banks need quality later stage companies to take public on stock exchanges. Corporate America, primarily Fortune 500 Companies, need to acquire quality later-stage companies to harness outside innovation for continued growth. VCs normally feed deal flow to Wall Street and Corporate America but in incredibly small amounts. For instance, there are over 3,700 Wall St. broker-dealers and there were only 190 Initial Public Offerings (IPOs) in 2018. Although the number of U.S. corporate mergers and acquisitions of 16,849 for 2018 seems significant, it’s paltry compared to the 28,000,000 Small Businesses in the U.S. In addition, exit valuations for company founders from mergers and acquisitions often run 1/5th of the valuations for IPOs.

The Solutions for Wall Street Investment Banks/Broker Dealers & Corporate Acquisitions. As Alliances of Commonwealth Capital, these institutional investors with a “tracked banner private invitation link” from their websites or email invitations, to ours, they seamlessly refer companies for standardized corporate engineering prior to investing. In addition, by re-engineering and re-capitalizing their previous older investments in privately held companies, with illiquid securities, these institutional investors and acquirers can be rescued by recapturing a return of all or a portion of the original capital invested. Enter the specific category from the Alliances Tab above.

Also, as Platinum Accredited Investors (Co-investors) with Commonwealth Capital, these institutional investors and acquirers can now invest with confidence into companies that have mitigated downside investment risk and maximize upside investment return potential through standardized corporate and social engineering. Once the proper corporate engineering is completed, these new well-engineered companies return to these Co-investors for – additional funding, if necessary, from a more qualified stance. Enter the specific category from the Investors Tab above.

In Summary.1. Young companies need substantial amounts of investment and human-capital but most are simply too risky to attract it;2. Most professional service providers simply cannot afford to talk to or engage these young companies that have no money;3. Most angel investors often lock up their capital in stagnant or losing deals;4. The venture capital and private equity industry has a huge capital overhang due to a lack of quality deal flow—and must return that capital to their investors;5. Securities & capital markets industry professionals are constantly faced with an ever increasing punitive-regulatory environment and endlessly shrinking margins, making it increasingly difficult to make a decent living; and6. Wall Street and Corporate America need quality later stage companies to invest in or acquire but they are few and far between.

There are huge gaps in all sectors…until now.Choose your area of need from the top menu and get started today!